Firm trade persists; Energy stocks shine

Firm trade continued on the street in late afternoon session, with both the larger peers, Sensex and Nifty holding their strong gains, tracking firm European markets. Energy index gained the most among all the sectoral indices, followed by Metal and IT. The market participants remained optimistic as  National Council of Applied Economic Research (NCAER) retained India’s gross domestic product (GDP) growth forecast at 7.4% for the current fiscal (FY19), citing comfortable agricultural sector outlook and a marked improvement in the external sector. Some comfort also came with a private report stating that the banking, financial services and insurance (BFSI) sector could create 9 lakh (0.9 million) jobs in the next four years. Adding some relief, External Affairs Minister Sushma Swaraj said that nurturing a climate of peace and stability in the region is a priority for India’s foreign policy which is based on ‘inter-dependence rather than dominance’. On the sectoral front, banking stocks were trading lower, as Finance minister Arun Jaitley cautioned banks against growing credit at a high rate of 28-31%, warning that this would amount to indiscriminate lending and sow seeds for future bad loans. Further, stocks related to power sector remained in focused on the back of reports that the Finance Ministry may soon hold talks with the Reserve Bank of India to resolve issues faced by the power sector.

On the global front, European markets were trading in green, after the US-Mexico trade deal to replace NAFTA helped ease further escalation of global trade tensions. The sentiments were positive despite France's government reduced its growth projection for next year and the 2019 budget will be based on the new forecast. The government forecast the economy to expand 1.7% in 2019 instead of 1.9% projected earlier. In economic releases, consumer confidence figures from France and US reports on home prices and consumer confidence are due later in the day. Asian markets were also trading in green. Back home, in scrip specific development, Dewan Housing Finance Corporation (DHFL) jumped higher after the company raised funds through allotment of 5000 Secured Redeemable Non-Convertible Debentures (NCDs) of face value of Rs 10 lakh each, amounting to Rs 500 crore on Private Placement basis.

The BSE Sensex is currently trading at 38863.10, up by 168.99 points or 0.44% after trading in a range of 38760.58 and 38920.14. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.40%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Energy up by 0.99%, Metal up by 0.89%, IT up by 0.58%, Auto up by 0.50% and TECK up by 0.50%, while PSU down by 1.27%, Consumer Durables down by 0.88%, Oil & Gas down by 0.68%, Realty down by 0.54% and Bankex down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.86%, Maruti Suzuki up by 1.76%, Tata Steel up by 1.49%, HDFC up by 1.42% and NTPC up by 1.35%. On the flip side, Yes Bank down by 3.88%, SBI down by 1.30%, Tata Motors - DVR down by 0.96%, Power Grid Corporation down by 0.86% and Bajaj Auto down by 0.68% were the top losers.

Meanwhile, with an aim to protect the domestic players and to discourage cheap imports, the government may impose anti-dumping duty on imports of High Speed Steel of Non Cobalt Grade from Brazil, China and Germany, as the investigation is already in the process on this product.

The Directorate General of Trade Remedies (DGTR) which ensures a level playing field to the Domestic Industry against the adverse impact of the unfair trade practices, has initiated an investigation into the alleged dumping of this product to determine the existence, degree and effect of alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry.

Graphite India had filed an application before the DGTR for imposition of anti-dumping duty on imports of the product from Brazil, China and Germany. The period of investigation (POI) for the purpose of present investigation covers 2017-18. However, for the purpose of injury investigation, the period will also cover the data of 2014-17.

The CNX Nifty is currently trading at 11726.40, up by 34.45 points or 0.29% after trading in a range of 11710.50 and 11760.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.48%, Reliance Industries up by 1.99%, Maruti Suzuki up by 1.94%, NTPC up by 1.63% and Tata Steel up by 1.62%. On the flip side, GAIL India down by 4.67%, Yes Bank down by 3.81%, HPCL down by 2.12%, Bajaj Finserv down by 1.20% and Eicher Motors down by 1.19% were the top losers.

Asian markets were trading mostly in green; Straits Times gained 24.51 points or 0.75% to 3,250.13, Nikkei 225 rose 13.83 points or 0.06% to 22,813.47, Taiwan Weighted zoomed 87.34 points or 0.79% to 10,989.55, KOSPI increased 3.82 points or 0.17% to 2,303.12, Jakarta Composite surged 6.32 points or 0.1% to 6,032.29, Hang Seng added 80.35 points or 0.28% to 28,351.62. On the flip side, Shanghai Composite was down by 2.92 points or 0.11% to 2,777.98.

All European markets were trading in green; UK’s FTSE 100 jumped 51.70 points or 0.68% to 7,629.19, France’s CAC gained 3.35 points or 0.06% to 5,482.45 and Germany’s DAX was up by 5.83 points or 0.05% to 12,544.14.